Home / Knowledge / News / Apparel/Garments / Clothing exports to get leverage from Jan 1
Clothing exports to get leverage from Jan 1
21
Dec '10
There are sound reasons for the International Monetary Fund's apprehension regarding Cambodia's constantly shrinking export base, but in spite of the slow rate of economic improvement amongst these nations, the indications for major markets – the United States and Europe for next year appear to be rather good than expected.

The International Monetary Fund (IMF), while considering that 40 percent of the Cambodia's overall exports are towards the US and Europe, has warned the garment sector of the dangers that are likely to follow in the long-run because of a fragile world economy. However, all the indicators right now are suggest that Cambodia's garment industry would have a steady demand from these major markets in the early part of next year, which indicates that the earnings, at least, will keep on increasing.

Moreover, from January 1st onwards, Cambodia will have duty-free access for almost all its garment exports to European Union as it is going to adopt a new law on the rules of origin, which minimizes the responsibility of value addition on the exporting country.

As stated by the Garment Manufacturers Association of Cambodia, the new legislation would greatly benefit the country, as under the current legislation the country many times does not enjoy the zero -duty status owing to its dependence on the imported raw materials.

Thus it follows that, despite of financial crisis in Portugal, Greece, Spain and Ireland, the demand for Cambodian garment is believed to rise owing to their reduced cost and increased ability to compete other world markets already enjoying zero-duty status, post imposition of the new rule.

Also, the sales figures registered by the retailers like JC Penney Co, Target and Macy's, and clothing labels like Abercrombie & Fitch in the US last month, too, remained to be above expectation. All of them import garments from Cambodia. Theoretically, this should lead to a reduction in the stocks and raise the demand for Cambodian garments in the coming year.

But then, General Ken Loo, Secretary of GMAC, had said that it is not certain that all this would result in a total revival of the sector or increase the revenues of the garment units in Cambodia, as with this year's recovery, the Kingdom has yet not been able to wipe out last year's loss. Apart from this, since the very beginning of the current year, there has been a jump of 60 percent in the cost of fabrics and the cotton prices, too, escalated at an even greater pace.

Fibre2fashion News Desk - India


Must ReadView All

Apparel/Garments | On 27th Jun 2017

Vietnam to build fashion, textile, trading centres

Vietnam's Ho Chi Minh City will build large centres for designing...

Textiles | On 27th Jun 2017

Barcelona’s Unitin develops recycled Indigo yarns

Unitin, a trademark of Industrias Morera SA and a leading textile...

Information Technology | On 27th Jun 2017

ThreadSol to bring fabric solutions to Thailand

ThreadSol, an enterprise material management provider for the sewn...

Interviews View All

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
July 2017

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search